The Butler Area School District 2020-21 budget proposal approved Monday looked much different from the version prepared a couple months ago due to the COVID-19 pandemic.

Revenue projections were reduced, spending was cut, hiring has been temporarily frozen and nearly $700,000 was placed in a budgetary reserve fund for any unexpected revenue loss or unanticipated expenses.

“Our budget plan looked very different a couple months ago,” Brian White, superintendent, said Tuesday. “This has shaken all that and we're going to have to define what our new normal is.”

In addition, the district had to estimate the amount of state subsidies it will receive because the state hasn't passed its budget that includes the subsidies.

“That's the big question mark,” White said about state subsidies. “We're making our best bet. We have so many unknowns. This is a starting point. As we get more information from the state we'll be able to refine our budget further.”

The school board will vote on the final version of the budget June 15.

The proposed $104 million budget approved by the school board Monday maintains the current real estate tax rate of 104.03 mills, but includes a 2 percent reduction in projected real estate tax revenue and the earned income tax revenue projection was also reduced.

“We're assuming that everybody's out of work and the economy is faltering. Everybody's not going to be able to pay their taxes,” White said.

Revenue includes $52.3 million from local sources, $47.8 million from the state and $4 million from the federal government. Local sources include $41.1 million from property taxes and $6.4 million from earned income and other Act 511 taxes. The projected property tax revenue is down $870,000 from 2019-20.

State sources include $25.9 million in basic education subsidies, $7.4 million in retirement contributions, $4.7 million in special education subsidies and $3.1 million in transportation subsidies.

Expenditures include $43.7 million for salaries, $30.3 million for employee benefits, $14 million for purchased services, $7.3 million for other financing uses, $3.8 million for purchased professional and technical services and $2.6 million for supplies.

Hiring of new permanent employees has been temporarily suspended unless those positions are mandated. Professional employees who accept early retirement incentives, which have been extended to June 12, and those who resign will not be replaced.

Furloughs and suspensions are not being considered. Professional development and training expenditures have been reduced. Contracts with service providers are being renegotiated.

Of the $12 million fund balance, $8 million is unassigned and can be used to address cash flow problems, White said. The budget reserve of $689,975 will be used if revenue results are worse than anticipated or if unexpected costs arise.

Food service has also been impacted by the coronavirus.

Because of the coronavirus pandemic, the district is providing 26,880 meals a week — two meals a day, including weekends — to 1,920 students. White said the district is waiting for state approval to continue the food service program through the summer, when the program typically ends.